Segment Information

3 Months Ended

Mar. 31, 2015

Segment Reporting [Abstract]

Segment Information

13. SEGMENT INFORMATION AND CONCENTRATIONS

The Company manages and reports its businesses in the following four segments:

• Financial Services - We offer solutions to enable customers in the financial services industry to reduce costs, generate new revenue streams and enhance customer loyalty. These solutions include a comprehensive line of ATM and payment processing hardware and software; cash management and video banking software and customer-facing digital banking services;  and related installation, maintenance, and managed and professional services. We also offer a complete line of printer consumables.

• Retail Solutions - We offer solutions to customers in the retail industry designed to improve selling productivity and checkout processes as well as increase service levels. These solutions primarily include retail-oriented technologies, such as point of sale terminals and point of sale software; an omni-channel retail software platform with a comprehensive suite of retail software applications; innovative self-service kiosks, such as self-checkout; as well as bar-code scanners. We also offer installation, maintenance, managed and professional services and a complete line of printer consumables.

• Hospitality - We offer technology solutions to customers in the hospitality industry, serving businesses that range from a single store or restaurant to global chains and sports and entertainment venues. Our solutions include point of sale hardware and software solutions, installation, maintenance, managed and professional services and a complete line of printer consumables.

• Emerging Industries - We offer maintenance as well as managed and professional services for third-party computer hardware provided to select manufacturers, primarily in the telecommunications industry, who value and leverage our global service capability. Also included in our Emerging Industries segment are solutions designed to enhance the customer experience for the travel industry, such as self-service kiosks, and the small business industry, such as an all-in-one point of sale solution. Additionally, we offer installation, maintenance, and managed and professional services.

These segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the chief operating decision maker in assessing segment performance and in allocating the Company's resources. Management evaluates the performance of the segments based on revenue and segment operating income. Assets are not allocated to segments, and thus are not included in the assessment of segment performance, and consequently, we do not disclose total assets by reportable segment.

The accounting policies used to determine the results of the operating segments are the same as those utilized for the consolidated financial statements as a whole. Intersegment sales and transfers are not material.

In recognition of the volatility of the effects of pension expense on our segment results, and to maintain operating focus on business performance, pension expense, as well as other significant, non-recurring items, are excluded from the segment operating results utilized by our chief operating decision maker in evaluating segment performance and are separately delineated to reconcile back to total reported income from operations.

The following table presents revenue and operating income by segment:

In millions	Three months ended March 31
	2015		2014
Revenue by segment
Financial Services	$	798	$	794
Retail Solutions	445		490
Hospitality	148		149
Emerging Industries	85		85
Consolidated revenue	1,476		1,518
Operating income by segment
Financial Services	105		103
Retail Solutions	16		36
Hospitality	18		12
Emerging Industries	7		4
Subtotal - segment operating income	146		155
Pension benefit	—		(1		)
Other adjustments(1)	51		48
Income from operations	$	95	$	108

⁽¹⁾  The following table presents the other adjustments for NCR:

In millions	Three months ended March 31
	2015		2014
Restructuring plan	$	16	$	—
Acquisition-related amortization of intangible assets	32		30
Acquisition-related costs	2		14
Acquisition-related purchase price adjustments	—		3
OFAC and FCPA investigations	1		1
Total other adjustments	$	51	$	48

The following table presents revenue from products and services for NCR:

In millions	Three months ended March 31
	2015		2014
Product revenue	$	604	$	634
Professional services, installation services and cloud revenue	400		383
Total solution revenue	1,004		1,017
Support services revenue	472		501
Total revenue	$	1,476	$	1,518